SIAA again questions AFCA actions on ‘wholesale’ complaints

Mike Taylor

Managing Editor and Publisher

26 August 2025

The ability of the Australian Financial Complaints Authority (AFCA) to accept complaints from self-managed superannuation funds (SMSFs) that have been classified as wholesale has again come into question.

The Stockbrokers and Investments Advisers Association (SIAA) has raised AFCA’s actions in the context of the broader impacts of the levy arrangements for the Compensation Scheme of Last Resort (CSLR).

As well, the SIAA has raised the issue with Treasury.

Canvassing the issue in its most recent monthly update, the SIAA referenced “AFCA’s recent approach to accepting complaints from SMSFs that have been classified as wholesale if those funds hold less than $10 million in net assets.

It said AFCA’s view is that under the law, if an adviser provides advice to a trustee in relation to an SMSF, it must be treated as a retail client until the SMSF has $10 million or more in assets.

“SIAA has communicated its concerns about the impact of AFCA’s determinations to Treasury, the government and the coalition,” it said.  “We have also raised concerns about the potential impact of these decisions on the sustainability of the CSLR.”

“It is unclear how many claims that have been referred to the CSLR are from wholesale clients that AFCA has re-classified from wholesale to retail,” it said.

The SIAA has made clear its concerns about the growing list of managed investment scheme collapses on the cost of funding the CSLR and the manner in which they impact the cost of the 2027 and 2028 financial year levies.

“It will be very difficult to attract new advisers to the industry while ever they are required to contribute to these levies,” it said.

“At the moment the industry is waiting for the results of the Treasury review and the Minister’s decision on what to do with the blow out in the FY 2026 levy.

“SIAA continues to advocate for change to the scheme and will continue to update members on developments.”